Economic growth - Gross Domestic Product
Last updated 10 October 2005
This report comments on the latest Gross Domestic Product (GDP) results and discusses their implications for the labour market. GDP is the measure of economic activity in New Zealand.
Summary
Economic growth strengthened to 1.1% in the June 2005 quarter after a run of moderate growth in the preceding four quarters. This result exceeded both the 10-year average and the average forecast of 0.8%.
However, growth of 1.1% was not quite as strong as it appeared. Revisions to data lowered growth in the previous six quarters by a total of 0.4% percentage points and one-off factors helped to boost growth in the June quarter (eg British & Irish Lions rugby tour, the early timing of Easter).
Services drove growth in the June quarter especially wholesale trade (up 2.5%), government administration & defence (up 1.6%), retail & hospitality (up 1.5%), and finance, insurance & business (up 0.9%).